For a Cinnaholic franchise, what document outlines the number of bakeries the Developer has the right to establish and operate?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor at a substantial expenditure of time, effort and money has established a system of developing, opening, operating and promoting bakeries specializing in offering custom gourmet cinnamon rolls and other food products and beverages and related bakery services under the name "CINNAHOLIC®" ("CINNAHOLIC® Bakeries" or "Bakeries") ("the CINNAHOLIC® System"). Developer has applied to Franchisor for, and Franchisor desires to grant to Developer, the right to establish and operate a specified number of CINNAHOLIC® Bakeries in accordance with a specified development schedule, all in accordance with the terms and conditions contained herein.
1. GRANT OF DEVELOPMENT RIGHTS
During the term of this Agreement, Franchisor hereby grants to Developer, subject to the terms and conditions contained herein, the right to establish and operate the number of CINNAHOLIC® Bakeries set forth on the development schedule (the "Development Schedule") attached hereto as Exhibit A. Each CINNAHOLIC® Bakery to be established hereunder shall be located in the non-exclusive area described in Exhibit A (the "Area of Responsibility"). Within Franchisor's discretion, Franchisor may consider sites proposed by Developer outside the Area of Responsibility which will count toward the Development Schedule if approved by Franchisor. The operation of any CINNAHOLIC® Bakery established pursuant to this Agreement shall be governed by an individual CINNAHOLIC® Franchising Limited Liability Company. Franchise Agreement to be entered into between Franchisor and Developer in accordance with Section 10 below (each, a "Franchise Agreement").
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the number of Cinnaholic bakeries a developer has the right to establish and operate is outlined in the Development Schedule, which is attached to the Development Agreement as Exhibit A. The Development Agreement grants the developer the right to establish and operate a specified number of Cinnaholic bakeries, and this number is detailed in the Development Schedule.
The Development Schedule also specifies the dates by which the developer must establish and open the minimum number of bakeries and maintain their continuous operation. Failure to comply with this schedule constitutes a default under the Development Agreement. The developer acknowledges that adhering to the Development Schedule is essential.
The Development Fee paid by the developer covers the right to establish, open, and operate the number of Cinnaholic bakeries outlined in the Development Schedule. A portion of this fee is credited towards the Franchise Fee for each bakery, provided it is established according to the Development Schedule. If a bakery is not established as scheduled, the corresponding portion of the Development Fee is forfeited and retained by Cinnaholic.
Prospective developers should carefully review Exhibit A and the Development Schedule to fully understand their obligations and the timeline for opening multiple Cinnaholic locations. They should also consider the financial implications of failing to meet the development milestones, as this could result in the loss of a portion of their Development Fee.